Summary: Coinbase has purchased a stake in Circle, the issuer of the USDC stablecoin. This move signals Coinbase’s intention to take a more hands-on approach to the project. The exact size of Coinbase’s stake has not been disclosed. USDC, developed through the Centre Consortium, has seen significant growth, with its market capitalization increasing from $500 million to $26 billion in the past five years. The stablecoin is competing with Tether’s USDT and PayPal’s recently launched stablecoin.

Frequently Asked Questions (FAQs)

What is Coinbase’s involvement with Circle and USDC?

Initially, Coinbase served as a distributor and advocate for Circle’s USDC project, with Circle providing the majority of the labor and capital. They had a revenue-sharing agreement based on USDC ownership and distribution statistics. However, Coinbase has now acquired a stake in Circle, indicating a more active role in the project.

What is the significance of Coinbase’s acquisition of a stake in Circle?

By purchasing a stake in Circle, Coinbase is demonstrating its commitment to the USDC stablecoin project and its desire to have a more hands-on approach. This move could indicate a deeper integration between Coinbase and USDC, possibly leading to further developments and innovations in the stablecoin space.

What is the market capitalization of USDC?

According to CoinGecko, the market capitalization of USDC has grown significantly in the past five years, reaching around $26 billion. This growth highlights the increasing popularity and adoption of USDC as a stablecoin.

What are Circle’s plans for USDC?

Circle intends to continue enhancing the capabilities of USDC. They plan to introduce USDC on six new blockchains in the future, although the specific blockchains have not been disclosed. Circle has also launched a Euro-backed stablecoin on Avalanche and is working on cross-chain functionality and programmable wallets to make USDC more attractive to developers.

What is the status of the Centre Consortium?

The Centre Consortium, which provided governance over USDC, has been disbanded. Coinbase and Circle decided to dissolve the consortium as they were already handling all the necessary tasks for maintaining and promoting USDC. The original purpose of the consortium, which was to facilitate governance sharing among multiple companies, was not realized.

Who is in control of the USDC project?

While Coinbase has acquired a stake in Circle, Circle will still largely remain in control of the USDC project. The exact extent of Coinbase’s new holding in Circle has not been disclosed, but Circle’s CEO Jeremy Allaire has stated that Coinbase’s stake is a modest, minority stake.